Joni Hyde Inc. has the following amounts reported in its general ledger at the end of the current year. Organization costs $24,000 Trademarks 15,000 Discount on bonds payable 35,000 Deposits with advertising agency for ads to promote goodwill of company 10,000 Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000 Cost of equipment acquired for research and development projects; the equipment has an alternative future use 90,000 Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years 80,000 Instructions a. On the basis of the information above, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year-end. b. If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
Joni Hyde Inc. has the following amounts reported in its general ledger at the end of the current year. Organization costs $24,000 Trademarks 15,000 Discount on bonds payable 35,000 Deposits with advertising agency for ads to promote goodwill of company 10,000 Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000 Cost of equipment acquired for research and development projects; the equipment has an alternative future use 90,000 Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years 80,000 Instructions a. On the basis of the information above, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year-end. b. If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
Related questions
Question
Joni Hyde Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs |
$24,000
|
Trademarks |
15,000
|
Discount on bonds payable |
35,000
|
Deposits with advertising agency for ads to promote |
10,000
|
Excess of cost over fair value of net identifiable assets of acquired subsidiary |
75,000
|
Cost of equipment acquired for research and development projects; the equipment has an alternative future use |
90,000
|
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years |
80,000
|
Instructions
a. On the basis of the information above, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year-end.
b. If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning